Bloomberg Talks — Rep. French Hill Talks Fed Subpoenas

Date: January 15, 2026
Host: Jonathan (Bloomberg)
Guest: Rep. French Hill (Chairman, House Financial Services Committee)

Episode Overview

This episode features Republican Congressman French Hill discussing President Trump's proposed cap on credit card interest rates, the broader economic and regulatory agenda, and the recent controversy over a Department of Justice (DOJ) subpoena to Federal Reserve Chair Jay Powell. The conversation addresses concerns over price controls, the availability of credit, regulatory burdens in banking and housing, Federal Reserve independence, and implications for the Fed’s leadership transition.

Key Discussion Points and Insights

1. Trump's Proposal to Cap Credit Card Interest Rates at 10%

• Host's Framing: History shows price controls often restrict supply; will this proposal be different?
• Hill's Position:
  • Strongly suggests it is a price control, expressing skepticism.
  • Emphasizes Republican unity with Trump on reversing Biden-era policies but signals division over this measure.
  • Quote [00:40]:
    "Look, this proposal is a price control and I think I've heard from Republicans in the House that they have concerns about it." — Rep. French Hill

2. Republican Economic Agenda

• Legislative Priorities Cited:
  • 21st Century Housing Act: Aimed at lowering home construction costs.
  • Main Street Capital Access Act: Intended to reduce compliance burdens and ensure regulations are tailored for bank complexity.
• Importance of Community and Regional Banks:
  • Banks under $10B make 60% of 1-4 family home loans.
• Goal: Lower tax and regulatory burdens, increase housing construction, bolster GDP growth.
  • Credit availability is crucial, as "2/3 GDP in the US is consumption."
  • Quote [01:12]:
    "We don't want to do anything that throws off that gross domestic product." — Rep. French Hill

3. Concerns Over the Chilling Effect on Credit

• Risk for Lower Credit Score Borrowers:
  • The proposal could reduce access to credit, even temporarily.
  • Republicans campaigned against price and rent controls in 2024.
  • Quote [02:21]: "This could mean that those Americans with lower credit scores have their credit curtailed in some way, even by a temporary proposal." — Rep. French Hill

4. Political Strategy: Trump’s Outreach to Democrats

• President Trump has reached out to Senator Warren and is texting with progressive state politicians.
• Interviewer Challenge: Is Trump moving too far left for Republicans?
• Hill’s Response:
  • Stresses partnership with Trump on broader economic goals.
  • Focused on economic growth via capital access and housing, not fighting over political alignment.

5. Fed Subpoena Controversy

• Background: DOJ has subpoenaed Fed Chair Jay Powell regarding a construction project.
• Hill's Knowledge:
  • Powell personally informed Hill about the subpoena ([04:11]).
• Hill on Fed’s Congressional Testimony:
  • Fed Chair will testify per usual schedule; date to be determined ([04:15]).

6. Threat to Fed Independence?

• Senator Tillis' Stance: Consider blocking Trump’s future Fed nominees until the subpoena is lifted.
• Hill's View:
  • Fed governors shouldn’t be immune from criticism or oversight.
  • Congressional oversight of the construction project is legitimate; criminalizing disputes isn’t.
  • Quote [04:54]: "Fed independence doesn't mean the Fed's immune from criticism... But to try to criminalize it and threaten people with a grand jury...I just, I don't agree with that." — Rep. French Hill

7. Legitimacy of the Subpoena

• Hill's Assessment:
  • Not in a position to judge legality but personally views it as "an overreaction."
  • Quote [06:04]: "I'd say it is, in my personal opinion, an overreaction to concerns about the construction at the Fed, and I don't agree with that approach." — Rep. French Hill

8. Powell's Public Response & Market Impact

• Powell's Rare Public Video:
  • Hill declines to second-guess Powell’s decision to make a video statement as opposed to a written response.
• Delay in New Fed Chair Process:
  • The DOJ action is a distraction to the process of selecting a successor.
  • Highlights President Trump's and Treasury Secretary Bessant’s ongoing efforts to choose a nominee.
  • Quote [06:59]: "I think it could throw it off track. I think it's a distraction to Treasury Secretary Bessant's very able partnership with the president to identify a new Fed chair." — Rep. French Hill
• Market Reaction:
  • Markets have shrugged off the subpoena dustup; Hill sees it more as a political/economic distraction than a real threat to Fed independence.
  • Reiterates commitment to regulatory reform, especially in permitting and housing.

Notable Quotes & Memorable Moments

• On Price Controls:
  "We don't want to do anything that throws off that gross domestic product." — Hill [01:12]
• On Credit Access Risks:
  "Those Americans with lower credit scores have their credit curtailed in some way, even by a temporary proposal." — Hill [02:21]
• On Fed Oversight vs. Criminalization:
  "Fed independence doesn't mean the Fed's immune from criticism... But to try to criminalize it and threaten people with a grand jury...I just, I don't agree with that." — Hill [04:54]
• On Distraction from Economic Agenda:
  "This is a distraction from our partnership with President Trump in lowering cost of living for our citizens..." — Hill [05:47]
• On Subpoena Legitimacy:
  "I'd say it is, in my personal opinion, an overreaction to concerns about the construction at the Fed..." — Hill [06:04]

Important Segment Timestamps

• Price Control Proposal Response: [00:40]–[01:56]
• Credit Access & Economic Risks: [02:13]–[02:49]
• Trump-Democrat Engagement & Republican Priorities: [02:48]–[03:56]
• Fed Subpoena & Hill’s Contact With Powell: [03:56]–[04:32]
• Discussion of Senate Proposals & Fed Independence: [04:32]–[05:47]
• Legitimacy of the Subpoena: [05:59]–[06:21]
• Powell’s Public Video & Nomination Delays: [06:21]–[07:49]
• Market Response & Final Thoughts: [07:49]–[08:45]

Tone and Language

The conversation is direct, occasionally technical but leavened with Hill’s political perspective and the host’s pointed questions. Hill is diplomatic but firm in his policy objections, maintaining a focus on economic growth and Republican priorities.

Summary prepared for those seeking a thorough understanding of the latest political and financial developments addressed by Rep. French Hill on Bloomberg Talks.